Chris Richardson, chief economist at Deloitte Access Economic, said the government's tax measures were a step in the right direction but might not be vote-winners.
"Those tax cuts are genuinely good," he said. "They're not politically popular but they're the most growth-friendly thing in this budget, and that is a standout. They're pretty slow and I'm sure business would have liked them faster, but given the political environment this is not a bad outcome."
Middle-income earners, meanwhile, got a pre-election sweetener by way of a tax cut. Workers currently earning A$80,000 or more are currently taxed at the second-highest bracket of 32.5 percent but the Treasurer proposed this bracket threshold be lifted to A$87,000.
"This is about providing more room in our tax system for average full-time wage earners to earn more without being taxed more", Morrison said.
A return to a balanced budget is still years away, however, with no return to surplus in the four-year forward projections released with the budget. The budget deficit is expected to fall to A$37.1 billion in 2016/17 from A$39.9 billion in 2015/16, dropping to A$6 billion in 2019/20.
Richardson said that while the budget had not made much progress on the country's deficit, there remained some big risks to the bottom line, including the knock-on impact of China's economic slowdown.
"China is doing fine now, partly because debt has jumped again," Richardson said. "But China could run into more troubles down the track and that would be big trouble for Australia's budget in particular."
- Reuters contributed to this report